AFP
CTP · Question #836
(Topic 9) A large U.S. based multinational corporation favors use of intra-company loans to repatriate funds from its foreign subsidiaries in order to take advantage of the favorable tax treatment…
The correct answer is D. hire a multinational bank to act as an intermediary. See the full explanation below for the reasoning.
Question
- (Topic 9)
A large U.S. based multinational corporation favors use of intra-company loans to repatriate funds from its foreign subsidiaries in order to take advantage of the favorable tax treatment of loans. In those countries which restrict repayment of intra-company loans the corporation may need to:
Options
- Anegotiate repayment with the host government.
- Bconduct the repayment at "arm's length".
- Cpay licensing fees to the host government.
- Dhire a multinational bank to act as an intermediary.
How the community answered
(49 responses)- A4% (2)
- B12% (6)
- C6% (3)
- D78% (38)
Community Discussion
No community discussion yet for this question.